Technolgy Weblog

“If the developments and research projections are anything to go by, then by 2008, the market size in the offshore product development (OPD) space in the India is going to increase exponentially, taking the number of engineers engaged in the OPD space from 1,00,000 to 2,50,000. The statistics are an indication that India is on track to emerge as one of the world’s leading centres for OPD,”

No one raises an eye brow while discussing about outsourcing and offshore outsourcing all said is now conventional in North America. Even though some concerns linger, for example intellectual property and job protectionism, the monetary payback continues to draw IT organizations.

The momentous gathered, through maturating of offshore capability within IT services has become the basis for next-generation product development.

This blog is a discussion on as to how companies can become more competitive by offshore product development(OPD) and sharing best practices in OPD. This blog assumes fresh development of new product, but is still valid for upgrades and enhancements

Software Development Challenges

Independent Software Vendors are under tremendous pressure to fasten time to market, ship products with fewer defects, compliances, different software delivery models, piracy etc. Some of the most common challenges faced by ISV’s include

1. Heightened
2. Decreasing Profitability
3. Pressure to upgrade, with new functionality and support earlier version product
4. Resource crunch
5. Effective and Proper testing
6. Compliance issues
7. Customization and Localization
8. New delivery model (SaaS)

Offshore Product Development Best Practices and Methodology

The promising best practice for software development is to decouple product design and development elements in the product development value chain. The Synergy achieved through decoupling the development process enables organizations to comprehend the value proposition of every stage — and potentially the return on investment (ROI).

The organization develops plan which identifies cost elements involved in each stage of product design and development and expected ROI.

Most simplistic decoupling structure would include

In the entire product life cycle, there is tremendous scope for cost cutting and being more competitive. Post completing the  basic decoupling  product development cycle, a success  product development would encompass, creating strategies for product development and delivery by targeted date. 

Best Practices in Offshore Product Development.

So, we are sold on offshore product development, what remains is in defining stage of involvement of offshore partners. Most ideal engagement  stage should be at product conception phase. The partner can then, also dedicate his team for successful roll out of new product. A engagement  road map strategy should then be prepared by partner which clearly lays out the following key parameters of project success 

1. Engagement Success parameter
2. Reporting Structure 
3. Project Plan
4. Project Team and committee 
5. Escalation level
6. Communication Plan
7. Business Continuity plan
8. Defect prevention and testing plan
9. Approach to development (Extreme Programing and other models depending on frequency of requirement changes)

The engagement road map strategy should be guiding force in product development. Metrics and documentation structure should be defined and refined during engagement. One of the good ways is to practice DAMAC process from sigma in an offshore product development engagement. 

Companies have  gained  in leaps and bounds  by offshore outsourcing product development , there have been few failures but that’s when companies have failed to get their basic engagement  process correct.  Blue Star Infotech with more than 23 years of offshore development development experience and with center of excellence for managing offshore products offers product development services. To know more click